San Bernardino County Employees' Retirement Association

By Laws

Article V. - Contributions

  1. Member Contributions                                 
    1. Member contributions shall be deducted from each salary or wage warrant drawn in favor of each member for each pay period.  The pay period shall be as determined by the Board of Supervisors or District governing body.

    2. Where the total salary or wage payable for a pay period is less than the normal contribution amount, no deduction shall be made from the salary or wage warrant.

    3. Normal contributions for members who are terminated for any reason prior to the ending date of a pay period shall be pro-rated to the date of termination except when all earnable compensation, less mandatory and voluntary deduc­tions, for the pay period is paid to the member.

  2. Withdrawal of Contributions and Deposits
    1. For the purpose of determining eligibility to withdraw accumulated contributions pursuant to Government Code Section 31628, service shall not be considered to have been discontinued if:
      1. Prior to termination of employment the member entered into an agreement with a County of San Bernardino or District appointing authority to be appointed to the same or another regular position in the same or next succeeding payroll period and is so appointed, or
      2. Termination of employment was for the purpose of establishing eligibility to withdraw accumulated contribu­tions and the member is appointed to the same or another regular position in the County of San Bernardino or District service in the same or next succeeding payroll period.

    2. Withdrawal Charge
      A withdrawal charge of one-half of interest credited to members account, not to exceed $40.00, shall be charged at the time members withdraw their accumulated contributions as provided for in Government Code Section 31628.

    3. To the extent authorized by both federal and state law, when refunding overpayments the Association will do so on the same tax basis as deposited by the member.

  3. Redeposit of Contributions Withdrawn
    An active or deferred member may redeposit, in the retirement fund, at any time prior to retirement, an amount equal to all of the accumulated normal contributions he or she has withdrawn, plus regular interest thereon from the date of separation from the Retirement Association.  Such redeposit may be made by lump-sum payment or by payroll deductions over a period of not to exceed 60 months, unless otherwise authorized by applicable law, but in no event shall the payroll deduction for this purpose be less than $50.00 per month, and payment shall be completed within 120 days after the effective retirement date.  When payment is complete, the member shall receive credit for the same number of months of service as was represented by the withdrawal.

  4. Acceptance of Plan-to-Plan Transfers and Rollovers
    1. County of San Bernardino 401(k) Plan - To the extent authorized by federal and state law and the San Bernardino County Board of Supervisors, the Association  shall accept  plan-to plan fund transfers and accept direct rollover funds from the County of San Bernardino’s 401(k) plan to satisfy all or part of the payment of contributions for the limited purposes of redepositing withdrawn contributions and purchasing prior public agency service, additional retirement credit, temporary time, permanent time in a non-covered position, credit for service as an unpaid city councilman, time as an elective officer with break in service, military service, and sick leave without pay.   The amount transferred or directly rolled over from the County of San Bernardino’s 401(k) Plan shall not exceed the amount required for the applicable purpose.  Further, all transfers must be timely made in the form and manner established by the Executive Director.  Transfers and rollovers may be voided, see subparagraph (c) below.  No transfer or rollover shall be accepted if, or to the extent, that it does not comply with federal tax law.

    2. County of San Bernardino and District 457(b) Plans - To the extent authorized by both federal and state law and the San Bernardino County Board of Supervisors or the District Boards of the Directors, the Association shall accept plan-to-plan fund transfers and accept direct rollover funds from  eligible 457(b) plans of the County of San Bernardino and Districts to satisfy all or part of the  payment of contributions for the limited purposes of redepositing withdrawn contributions and purchasing prior public agency service, additional retirement credit, temporary time, permanent time in a non-covered position, credit for service as an unpaid city councilman, time as an elective officer with break in service, military service, and sick leave without pay. The amount transferred or rolled over shall not exceed the amount required for the applicable purpose.  Further, all transfers must be timely made in the form and manner established by the Executive Director.  Transfers and rollovers may be voided, see subparagraph (c) below.  No transfer or rollover shall be accepted if, or to the extent, that it does not comply with federal tax law.

    3. True-Up of Plan-to-Plan Transfers and Direct Rollovers 
      1. Effective February 1, 2003, Association will apply applicable interest on plan-to-plan transfers and direct rollovers based upon the date in which the funds were effectively received by the Association and the agreed upon date of transfer or rollover in the member’s purchase agreement.
      2. If the member does not pay the amount owed for the applicable purpose by the date required by the redeposit agreement, the Executive Director shall as soon as reasonably possible inform the member of the additional amount owed to complete the redeposit agreement.  The member will have 30 days to pay the additional amount owed by cash or personal check.  If cash or a personal check for the additional amount is not received by the Association within 30 working days after the date that the Executive Director notifies the member of the additional amount owed, then all of the transferred or rolled over funds will be returned to the qualified 457 or 401(k) plan and the purchase will be voided and treated as never having occurred.  However, no cash or check shall be accepted if, or to the extent, that it does not comply with federal tax law.
      3. If the member pays more than the amount owed for the applicable purpose by the date retired by the redeposit or purchase agreement, the Association will return the excess amount immediately and directly to the transferring 457(b) or 401(k) plan.

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